A Breakthrough Factoring CompanyOffering Factoring Programs
Tailoredto Make You More Money Is Factoring For
You?

The key to knowing if factoring
is for you is to not to look only at the bottom-line factoring fee, but also
toconsider how your company may increase it's profits
through
factoring.

Here is additional
information on factoring to help you with your decision.

How are
fees and advance rates determined?It is based on several factors:The
creditworthiness of your clientsYour monthly billing volumeAverage
invoice sizeAverage days to paymentFees can range from 2-5 % of the
invoice's face value. For example if the invoice's value is $1,000;
a fee of
3% equals $30.

What is an
advance?The
amount of money you receive immediately when webuy your invoice. The balance
is returned to you when your customer pays the invoice.Advances range
from 60-95% of the invoice's face value. For example if the invoice's value
is $1,000 an advancerate of 80% equals $800. The balance of $200 less
thefactoring fee is returned to you when your
customer pays the
invoice.

Comparing Bank Lending Rates to Factoring?When
compared to bank lending rates, factoring initially appears to be very
expensive. Here are five typical questions/concerns that are raised by
potential
factoring clients

Wow! 3 points per month!
That's 36 percent year!It is tempting to annualize the numbers, but that
is an
"apples and oranges" comparison.
Banks loan money at an annualized interest rate,
12 percent per year for example. We purchase
your receivables at a discount. The
products are
different and there are other inconsistencies to this
inappropriate
comparison

The bank provides the money only one time,
the day that you
receive the loan; we provide money continuously. As an example, consider a bank
loan for $100,000 at 12 percent. You receive the
$100,000 just one time and then
pay $1,000 interest
per month interest and you still owe the $100,000.
Or the
bank could provide you with a line of
credit that you use only
when you need the
money but the bank is charging
you for that privilege and if you need to
increase
your line you need to go through the qualifying
process all over
again.

When you factor $100,000 each month for
a year you have the use of
$1.2 million (12 x $100,000)
over the year.
Unlike a bank loan where you have
just $100,000 one time. Assuming a 3 point discount, the fees over the year will
be 12 x $3,000 or $36,000, which is still 3 percent of $1.2 million. And at the
end of the year you have no debt!

I'm only making 3% profit,
how can I pay you 3 points?A company making only 3% net profit can do more business
volume as a result of factoring, and the larger volume will result in a higher
profit margin because fixed costs do not increase with volume. The added
business at a higher marginal profit leads to an increased overall profit
margin. As the volume increases, the cost of production decreases, so that
profits increase. Fixed costs i.e., rent, electric, insurance, etc., increase
very little or not at all with volume. An increase in business will not affect
rent. Electric bills may rise slightly. Workers compensation insurance may rise
slightly. These costs do not increase as do direct production
costs.

Let's graphically do the math assuming you can double your
salesWithout Factoring

Monthly Gross
Sales

$50,000

Cost of Goods
Sold

$30,000

60% of Gross
Sales

Monthly Gross
Profit

$20,000

40% of Gross
Sales

Fixed
Expenses

$10,000

Variable
Expenses

$8,500

17% of Gross
sales

Factoring
Fee

N/A

Total
Expenses

$18,500

37% of Gross
Sales

Monthly Net
Profit

$1,500

3% of Gross
Sales

With
Factoring

Monthly Gross
Sales

$100,000

Cost of Goods
Sold

$60,000

60% of Gross
Sales

Monthly Gross
Profit

$40,000

40% of Gross
Sales

Fixed
Expenses

$10,000

Variable
Expenses

$17,000

17% of Gross
Sales

Factoring
Fee

$3,000

3%
Fee

Total
Expenses

$30,000

30% of Gross
Sales

Monthly Net
Profit

$10,000

10% of Gross
Sales

But I only get 80% of my
money upfront!Let's assume an advance rate of 80%. Let's also
assume that you begin factoring in January. You have factored $100,000, we pay
you $80,000 of that money upfront, with the remaining money making up the fee
(3%) of $3,000 and the reserve (17%) of $17,000.Now in February, you once
again factor $100,000 and receive $80,000. However. you also receive your
January reserve of $17,000(assuming your customer pay in 30 days). So for
February, you actually receive 97% of your money, instead of 80%.In the
second month and going forward you are basically receiving 97% of your cash
flow.

But what if my customers
take longer than 30 days to pay?You have several options, Assume your client takes 60
days to pay you bill your client in the normal fashion and simply allow 30 days
to go by prior to factoring that invoice. That way you pay the 30 day
fee.Another way is to factor your faster customers first for the cash you
need.

We Can Offer You
What Others Can't

Unlike other factoring
companies, our program includes the following features at no additional
charge: • 24 hour funding on approved invoices•
Highest advance rates in the industry• Credit analysis on new and existing
customers• Continuous collection management and follow up on factored
invoices• Invoice and statement mailing (postage included)• Account
status inquiries anytime; 24/7 online account access.• We allow you to electronically
submit Invoices• Free credit checking on new customers at no additional
cost

Also • Personalized Service - you have one dedicated
person and his or her assistant who handle your account. You don't have
to start over each time you call with a new person• We are seasoned
professionals with an average of 11 years industry experience per
account executive (Well above the factoring industry
norm)

Our flexibility allows you to maintain control:• You select accounts you prefer to factor on an
invoice by invoice basis.• You control total factoring costs by only
factoring on an "as needed" basis. Up to 97% Advance Rates:Advance rates are based on overall risk
associated with a particular industry as well as experience and track record. We
hold reserve accounts to accommodate industries which typically experience
dilution and that we would otherwise not be able to service. Advance rates range
from 80% to 97% of the gross invoice amount.